unsecured debt
Loan without collateral
Unsecured debt is money owed without collateral backing it—no house, car, or other asset the lender can seize if you default.
Credit card balances, medical bills, and student loans are typical examples.
Because the lender takes on more risk, unsecured debt usually carries higher interest rates than secured debt like mortgages or auto loans.
Legal status when insolvent
- insolvencyInability to pay debts
- delinquencyCriminal or neglectful behavior
- nonpaymentFailure to settle debts
- arrearsOverdue financial obligations
overdue · collection · write-off · charge-off · garnishment · judgment · repossession · foreclosure
Legal or financial obligation
- repaymentGiving back what's owed
- principalChief school administrator
- installmentPeriodic partial payment
- amortizationGradual debt reduction schedule
promissory note · borrower · lender · loan agreement · term · maturity · payment schedule · cosigner
Ability to repay debts
- credit cardBorrowed-funds payment tool
- credit scoreNumerical measure of borrower reliability
- credit limitMaximum allowed debt
- revolvingTurning around a center
interest · APR · balance · cardholder · credit line · consumer credit · credit history · credit report
- student loansBorrowed funds for tuition
- personal loansUnsecured funds lent to individuals
- payday loansShort-term high-interest borrowing
- overdraftsNegative account balances
utility bills · store credit · lines of credit · installment loans · legal judgments · gym memberships
Involving significant danger
- uncollateralizedWithout pledged security
- unbackedWithout financial or moral support
- unprotectedWithout safeguard or shield
- exposureState of being unprotected
credit risk · pro rata · recovery rate · risk premium · junk · speculative · investment grade · rating
bankruptcy
Legal status when insolvent
- insolvencyInability to pay debts
- delinquencyCriminal or neglectful behavior
- nonpaymentFailure to settle debts
arrears · overdue · collection · write-off · charge-off · garnishment · judgment · repossession · foreclosure · settlement
liability
Legal or financial obligation
- repaymentGiving back what's owed
- principalChief school administrator
- installmentPeriodic partial payment
amortization · promissory note · borrower · lender · loan agreement · term · maturity · payment schedule · cosigner · guarantor
creditworthiness
Ability to repay debts
- credit cardBorrowed-funds payment tool
- credit scoreNumerical measure of borrower reliability
- credit limitMaximum allowed debt
revolving · interest · APR · balance · cardholder · credit line · consumer credit · credit history · credit report · outstanding
medical bills
- student loansBorrowed funds for tuition
- personal loansUnsecured funds lent to individuals
- payday loansShort-term high-interest borrowing
overdrafts · utility bills · store credit · lines of credit · installment loans · legal judgments · gym memberships
high-risk
Involving significant danger
- uncollateralizedWithout pledged security
- unbackedWithout financial or moral support
- unprotectedWithout safeguard or shield
exposure · credit risk · pro rata · recovery rate · risk premium · junk · speculative · investment grade · rating · creditworthy
- debtcreditor, owe, lender, unpaid, borrower
- debtscar loan, student loan, loans, bank loan, personal loan
- business debtbank loan, commercial loan, credit line, line of credit, loan
- Debt Termsbankruptcy, insolvency, delinquency, arrears, principal
- creditor priorityfirst lien, subordination, waterfall structure
- debt instrumentsjunk bonds, corporate bonds, term loans, bridge loans, CDOs
unsecured debtsecured debt
Loan backed by assets
secured loan · mortgage · home loan · auto loan · secured credit
secure, debt, security, insecure, secured, insecurity, indebted, debtor, unsecured